WSJ GM contract will allow automaker to buyout 24,000 - hire lower paid workers.

[A HERETIC I AM]

General Motors Corp. would have the ability to buy out as many as 24,000 UAW workers and replace them with lower-paid new hires thanks to a move by the union to expand the definition of non production job classifications under a tentative contract with the auto maker, according to management and union officials briefed on the pact.

(Remainder of this article by website subscription only)
http://online.wsj.com/article/SB119094781550742348.html?mod=hpp_us_whats_news

I have access to further details on this story but i can not cut and paste (right-click protected source) but here are a few more pertinent points;


A "Second-tier" wage package has been agreed to which would allow GM to hire at a much lower compensation package, Janitors, Landscape and Materials handlers. They will also be allowed to define some entry-level production work and skilled trade positions as a "non-core position" whereby they get paid about half of the $70-$75 per hour wage and benefit package traditionally given to Detroit's Autoworkers.

Those workers would later have the ability to transfer to the higher paying production jobs. They will get 401(K) plans instead of pensions, the norm for previous UAW hirees and the 401(K) will carry with them if they move to new jobs.

Because GM has 15,000 to 20,000 workers already eligible for retirement, GM may be able to offer buy-out packages and quickly take advantage of the second-tier agreement.

A win for the UAW in the talks was getting a pension increase from GM that will average about $700 per year for most retired UAW members. This will help offset some slight retiree health care cost increases. The UAW was also able to win investment commitments from GM on "many, many, like 20 or more plants" said a person familiar with the contract. One plant that was given future investment was the Lordstown, OH assembly plant. The commitment is in the "Tens of billions of dollars" over the next several years said this person.

(Lordstown is one of the largest auto assembly plants in the world, by both production capacity and size)

The source for the above text is Dow Jones Newswire that is, as i said, right click protected and has no URL to link. I would think this will make the national press by tomorrow.

[Vinca]

1. I can't believe the union took over the retiree health care plan.

Good luck on that.

[A HERETIC I AM]

2. I have a feeling GM left them with little choice. n/t